Bill blocks Federal Reserve members' dual appointments

(The Center Square) - Federal Reserve board members would not be able to hold dual positions appointed by the president if U.S. Sen. Ruben Gallego's new bill becomes law.

Gallego, D-Arizona, this week introduced the Fed Integrity and Independent Act, which seeks to prevent Federal Reserve Bank presidents, vice presidents, officers and employees, board of director members and board of governors members from holding multiple presidentially appointed positions.

The legislation states the Federal Reserve System depends on the ability to "operate independently of any short-term political pressure, particularly from an elected official or individual in a position of public trust."

The bill was proposed after President Donald Trump appointed Stephen Miran to the Federal Reserve Board. Miran also serves as the chair of the President's Council of Economic Advisers. The Senate committee confirmed Miran to the Federal Reserve Board a day before Gallego introduced his legislation.

When being questioned by the Senate Committee on Banking, Housing and Urban Affairs, Miran told senators last week that he would not need to leave his chair position, but rather, he would take an unpaid leave of absence.

Gallego's bill would prohibit a person's ability to hold two positions while taking a leave of absence from one of those jobs.

The Arizona senator noted this bill, which was introduced Tuesday, would require Miran to resign from his chair position.

Any current government official, congressional member or politically affiliated individual within the Federal Reserve System causes "legitimate concerns about the conflict of interest and undue influence," according to Gallego's bill.

Gallego said an independent Federal Reserve not "subject to the whims of politics is the cornerstone" of America's monetary policy.

To risk the Federal Reserve's independence puts the country's economy at risk, the senator noted.

The Center Square contacted the Federal Reserve Board, but a spokesperson said it did "not have anything to share" on Gallego's bill.

Besides Gallego, the legislation is co-sponsored by U.S. Sens. Elizabeth Warren, D-Massachusetts; Chris Van Hollen, D-Maryland; Catherine Cortez Masto, D-Nevada; Andy Kim, D-New Jersey; Lisa Blunt Rochester, D-Delaware; and Angela Alsobrooks, D-Maryland.